Nextensa · EURONEXT:NEXTA
Nextensa — Leasinvest Real Estate — H1 2016 Earnings Presentation
41 slides from Nextensa's earnings presentation, Aug 25, 2016
Slide 1: Half-year results 2016
Half-year results 2016 25 August 2016
Slide 2: Agenda
AGENDA Company profile History Strategic vision Activity overview 1H 2016 Financial results 1H 2016 Share performance & reporting Appendices Half-year results 2016 2
Slide 3: Company profile
COMPANY PROFILE Half-year results 2016 3
Slide 4: Leasinvest Real Estate
LEASINVEST REAL ESTATE 6th largest BE-REIT/SIR/GVV CH Largest real estate investor in Luxembourg RE 5% listed on Euronext Brussels 8% LU 47% Fair value portfolio 1H 2016 incl. stake in Retail Estates BE € 885 M 40% Market capitalization > € 540 M LOG/S-I 15% Shareholders Ackermans & van Haaren (AvH)
Slide 5: Corporate structure
CORPORATE STRUCTURE Ackermans & van Haaren AXA Belgium 30% 29% 100% Leasinvest Real Estate SCA Leasinvest Real Estate Management SA = BE REIT/SIR/GVV = asset & investment management for LRE & LIL = buildings in Belgium Belgium Grand-duchy of Luxembourg Switzerland Leasinvest Services SA 99% 100% Lea
Slide 6: Solid fundamentals
SOLID FUNDAMENTALS occupancy cost of debt 97.5% 2.87% average rental yield duration debt 6.95% 2.88y weighted average lease debt ratio duration 56.68% 4.45y Half-year results 2016 6
Slide 7: Portfolio breakdown
PORTFOLIO BREAKDOWN 30/06/2016 LUXEMBOURG BELGIUM SWITZERLAND TOTAL fair value (million €) 419 351 44 814 retail 275 48 44 367 offices 125 191 - 316 logistics/semi-industrial 19 112 - 131 duration leases till first 4.55y 3.89y 5.13y 4.45y break occupancy rate 99.68% 94.48% 100% 97.47% rental yield (
Slide 8: History
HISTORY Half-year results 2016 8
Slide 9: Milestones
MILESTONES 1999 acquisition of 2 Belgian real estate portfolios (Extensa & Brixton) merged into Leasinvest RE with a total portfolio of € 170M and a market cap of € 130M launched on the Brussels Exchange. AvH owned 100% of Leasinvest RE reduced to 45% after launching on the Exchange. Since 2005 stak
Slide 10: Milestones
MILESTONES 1999-2005 2006 2008 2012-2013 2014 2015 FOCUS OFFICES LEASINVEST METRO KNAUF SHOPPING RETAIL Tour & BELGIUM IMMO LUX LUX CENTERS LUX CH Taxis BE (in € million) (% per asset class) 1.000 100% 900 90% 800 80% 700 70% 600 60% 500 49,6% 50% 400 40% 35,6% 300 30% 200 20% 14,8% 100 10% 0 0% 200
Slide 11: Office markets Luxembourg-Brussels
OFFICE MARKETS LUXEMBOURG-BRUSSELS (BE) Source: Cushman & Wakefield LU BE 400 8% 700 14% 12,1% 12,4% 12,1% Thousands Thousands 7,6% 7,3% 350 7% 600 11,1% 12% 10,6% 6,3% 6,3% 9,9% 10,1% 9,9% 9,9% 300 6% 9,7% 9,3% 5,6% 5,0% 500 10% 5,3% 250 5% 400 8% 200 4,2% 4% 3,5% 334 300 593 6% 150 3,2% 3% 519 517
Slide 12: Strategic vision
STRATEGIC VISION Half-year results 2016 12
Slide 13: Strategic vision
STRATEGIC VISION Investment strategy Development strategy Commercial strategy Financial strategy opportunity driven organic (re)developments maximize duration of minimize funding cost & retail & offices LU-BE-CH generating capital gains leases & occupancy rate secure equity & debt capital recycling
Slide 14: Shrewd acquisitions
SHREWD ACQUISITIONS Montoyer Brussels CBD (BE) Dexia Immo Lux (LU) Metro Group retail (LU) Montimmo, Av Monterey (LU) - reconstructed by 2018 - portfolio € 150M - portfolio € 50M - 3 buildings - redevelopment - 2016: 21y usufruct with EP - 13 buildings - 2011: extension Diekirch - 2009: capital gain
Slide 15: Creating value: evolution of equity since 1999
CREATING VALUE EVOLUTION EQUITY SINCE 1999: IMPORTANT CONTRIBUTION OF LUXEMBOURG in euro M 400.000 340.151 293.864 300.000 200.000 146.661 130.444 103.687 100.000 -246.469 -52.820 -35.216 0 Shareholders' equity Capital increases Current result Dividend distributions Capital gains Belgium Capital gai
Slide 16: Capital gains Luxembourg: successful redevelopments
CAPITAL GAINS LUXEMBOURG: SUCCESSFUL REDEVELOPMENTS GENERATING IMPORTANT CAPITAL GAINS UNREALIZED CAPITAL GAIN € 14 M REALIZED CAPITAL GAIN € 15.2 M UNREALIZED CAP. GAIN € 2 M UNREALIZED CAPITAL GAIN € 1.2 M REALIZED CAPITAL GAIN € 22 M Half-year results 2016 16
Slide 17: Steady recurring income
STEADY RECURRING INCOME Reflected in steady and sustained dividend growth since 2008 in euro M in euro in euro in euro 60.000 4,8 85 6,0 4,6 80 50.000 5,5 4,4 75 40.000 4,2 5,0 4,0 70 30.000 4,5 3,8 65 20.000 3,6 4,0 60 3,4 10.000 3,5 3,2 55 0 3,0 50 3,0 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 18: Steady occupancy rate and rental duration
Retail & wholesale STEADY OCCUPANCY RATE 6% 6% 1% 3% Services Government & non- AND RENTAL DURATION 8% 7% 48% profit Financial sector Transport & distribution Industry 21% ICT Medical & Pharma Occupancy rate Rental duration (first break) 100% 7,0 99% 98% 6,0 97% 96% 5,0 95% 94% 4,0 93% 92% 3,0 91% 9
Slide 19: Funding characteristics
FUNDING CHARATERISTICS funding cost at 2.87% (1H 2015: 3.50%) decreased through lower margins & Funding diversification prolonging existing hedging contracts (Q4 2015) total committed credit lines (incl. bonds): € 593.7 M (31/12/2015: € 568. 7M) Bilateral lines average duration of facilities at 2.88
Slide 20: Hedging strategy
HEDGING STRATEGY debt financing at end 1H 2016 86% hedged: fixed rate debt (32%), interest rate swaps (38%), interest caps (8%; *sold 07/2016) and cross currency swaps EUR/CHF (8%) Duration: 6.22 y (1H 2015: 6.50 y) Hedge ratio* 120% 100% 80% 60% 40% 20% 0% jun/16 sep/16 dec/16 2017 2018 2019 2020 2
Slide 21: Activity overview
ACTIVITY OVERVIEW Half-year results 2016 21
Slide 22: Highlights 1H 2016
HIGHLIGHTS 1H 2016 Key figures increase rental income from € 25.1 M to € 28.4 M (+13%) higher net result from € 13.4 M to € 15.2 M (+13%) increase net current result from € 11.1 M to € 14.9 M (+34%) Divestments Royal20 with total capital gain € 22 M Zeutestraat Malines for € 4.5 M to end-user Lettin
Slide 23: Key consolidated financials 1H 2016
KEY CONSOLIDATED FINANCIALS 1H 2016 30/06/2016 30/06/2015 Fair value (€ 1,000) 814,146 748,498 +8.8% Fair value incl. stake Retail Est. (€ 1,000) 885,106 810,222 +9.2% Rental income (€ M) 28.4 25.1 +13% Net result (€ M) 15.2 13.4 +13% Net current result (€ M) 14.9 11.1 +34% Average funding cost (%)
Slide 24: Main activities LU 1H 2016: Royal20
MAIN ACTIVITIES LU 1H 2016 SUCCESSFUL RECEPTION ON TIME AND DIVESTMENT OF OFFICE BUILDING ROYAL20 30/06/2016: Royal20 sold for € 62.5 M at reception of finished building according to agreement concluded in 1H 2015 sale was opportunity-driven - 100% pre-let to China Merchants Bank (€ 3 M rent, 10y) -
Slide 25: Main activities LU 1H 2016: Strassen retail park
MAIN ACTIVITIES LU 1H 2016 REDEVELOPMENT RETAIL SITE STRASSEN INTO LARGEST RETAIL PARK IN PERIPHERY RENEWAL OF RENTAL CONTRACT WITH ROLLER FOR 15-YEAR FIXED PERIOD existing Einkaufszentrum Strassen (Route d’Arlon) to be refurbished into retail park with shops & restaurant retail project of 22,721 m²
Slide 26: Main activities BE 1H 2016: Montoyer 63
MAIN ACTIVITIES BE 1H 2016 RECONSTRUCTION PROJECT: MONTOYER 63 EUROPEAN PARLIAMENT SIGNED 21 Y USUFRUCT AGREEMENT European Parliament signed 21y fixed usufruct building vacant: 11/2016 demolish & fully reconstruct the building building permit obtained office project of 6,052 m² reception by Q3 2018
Slide 27: Main activities BE 1H 2016: Square de Meeûs
MAIN ACTIVITIES BE 1H 2016 RECONSTRUCTION PROJECT: SQUARE DE MEEÛS BUILDING PERMIT OBTAINED building vacant as of 07/2015 demolish & fully reconstruct the building building permit obtained office project of 5,936 m² reception end Q2 2017 objective = BREEAM ‘excellent’ design: Assar Architects (Bruss
Slide 28: Corporate governance
CORPORATE GOVERNANCE NEW COMPOSITION BOARD OF DIRECTORS AND COMMITTEES As of 18/08/2016: Mr Luc Bertrand, after 17 years, is succeeded by Mr Jan Suykens (member of the executive committee since 1999) as chairman of the board of directors of LREM, statutory manager Mr Piet Dejonghe, member of the exe
Slide 29: Financial report 1H 2016
FINANCIAL REPORT 1H 2016 Half-year results 2016 29
Slide 30: Key consolidated figures 1H 2016
KEY CONSOLIDATED FIGURES 1H 2016 Key figures balance sheet 30/06/2016 31/12/2015 Net asset value group share (€ 1,000) 340,151 362,405 Number of issued shares 4,938,870 4,938,870 Number of shares entitled to the result of the period 4,935,478 4,935,478 Net asset value group share per share 68.9 73.4
Slide 31: EPRA KPI's 1H 2016
EPRA KPI’S 1H 2016 30/06/2016 30/06/2015 EPRA Earnings 14,795 10,939 EPRA Earnings per share 3.00 2.21 EPRA NAV 394,777 373,420 EPRA NAV per share 80.0 75.61 EPRA NNNAV 340,151 339,312 EPRA NNAV per share 68.92 68.70 EPRA initial yield 5.48% 5.75% EPRA ‘topped up’ yield 5.54% 5.79% EPRA vacancy 2.53
Slide 32: Outlook financial year 2016
OUTLOOK FINANCIAL YEAR 2016 Notwithstanding the expected demolition and reconstruction of 2 buildings in the Brussels CBD in 2016, namely the Montoyer 63 building, for which an usufruct agreement was concluded with the European Parliament for a term of 21 years, and the building Square de Meeûs, for
Slide 33: Share performance & reporting
SHARE PERFORMANCE & REPORTING Half-year results 2016 33
Slide 34: Share performance
SHARE PERFORMANCE in euro 120 320 110 280 100 240 90 80 200 70 160 60 120 50 100 - 40 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Share price LRE NAV LRE (fair value) NAV LRE (EPRA) share price LRE EPRA Eurozone
Slide 35: Share performance
SHARE PERFORMANCE Half-year results 2016 35
Slide 36: Analyst recommendations and financial calendar
ANALYST RECOMMENDATIONS FINANCIAL CALENDAR 2016/2017 Bank Analyst Recommendation Target Date price Degroof Petercam Herman van der Loos Add € 95.00 05/07/2016 KBC Securities Koen Overlaet-Michiels Hold € 105.00 08/07/2016 ING Securities Jaap Kuin Hold € 82.00 18/12/2015 Financial calendar 2016/2017
Slide 37: Investor relations contacts
INVESTOR RELATIONS CONTACTS MANAGEMENT www.leasinvest.be Follow us on Jean-Louis Appelmans CEO Michel Van Geyte COO Piet Vervinckt CFO Jean-Louis Appelmans (63) is CEO of Michel Van Geyte (50) joined Leasinvest Piet Vervinckt (44) joined as CFO Leasinvest Real Estate (since inception Real Estate in
Slide 38: Disclaimer
DISCLAIMER This presentation contains forward-looking statements. Such forward-looking statements involve unknown risks, uncertainties and other factors which may cause the actual results, financial conditions, performance or achievements of the company to be materially different from any future res
Slide 39: Appendices
APPENDICES Half-year results 2016 39
Slide 40: Consolidated income statement
CONSOLIDATED INCOME STATEMENT 30/06/2016 30/06/2015 Thanks to the acquisition of T&T Royal Depot end 2015 rental income has increased Rental income 28,412 25,123 to € 28.41 M (+ 13.1%). ‘Like-for-like’ rental income was stable (+1.3% ), excl. rental guarantees received and rent discounts). Writeback
Slide 41: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET (in € 1,000) 30/06/2016 31/12/2015 (in € 1,000) 30/06/2016 31/12/2015 ASSETS LIABILITIES I. NON-CURRENT ASSETS 905,302 954,243 TOTAL SHAREHOLDERS' EQUITY 340,150 362,410 Intangible assets 7 10 I. SHAREHOLDERS' EQUITY ATTRIBUTABLE TO THE 340,150 362,405 Investment propertie
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